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Brookfield Q3 net income surges on fee-related earnings

By Reuters News


Overview

  • Global investment firm's Q3 net income rose to $1.9 bln from $284 mln a year ago

  • Distributable earnings before realizations up 14% yr/yr, driven by asset management and wealth solutions

  • Company repurchased $300 mln of shares since last report, $900 mln year-to-date


Outlook

  • Company says current macroeconomic environment supports demand for real assets with inflation-linked revenues

  • Brookfield expects to finalize first close of infrastructure flagship fund in coming weeks

  • Company continues to focus on reinvesting excess cash flows and pursuing asset monetizations


Result Drivers

  • ASSET MANAGEMENT GROWTH - Fee-related earnings rose 15% yr/yr, supported by $25 bln in capital raised and increased demand for long-duration, inflation-protected assets

  • WEALTH SOLUTIONS EXPANSION - Distributable earnings rose 22% yr/yr, driven by organic growth, investment performance, and the Just Group acquisition expanding insurance assets

  • OPERATING BUSINESSES STABILITY - Cash flows remained resilient, underpinned by contracted, inflation-linked revenues and strong demand for essential products and services


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Total consolidated Net Income

$1.90 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy"

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Nov 11 - Canada's Power Corporation Q3 adjusted net earnings rise driven by Great-West Lifeco, IGM Financial

  • Nov 9 - Canada's IA Financial Q3 adjusted EPS beats estimates

  • Nov 9 - KKR's Q3 profit rises on higher fee income, monetization


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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